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It could be co-citation and it could be a simple association algo as well.

For example, one of my test websites(image niche) already about a year is found in bad neighborhood - porn niche ;) Needless to mention but there isn't any content related to that but users constantly find it by porn related keywords. And not only that - they searching/looking in to the site for porn as well.

So, i find this co-citation/association algo in place already for some time but newer formulate it clearly until present moment. Now I see - I'm not alone ;)

Regarding big and small brands/websites - Just try to think how Google 'could' work:

Google's action/execution/insight thoughts - 'we' need to find a test objects! Which one we will use - small or big!? Of course small as big almost always paying us and in case something bad will happen - small website will newer make serious problems for us - it's just a safe side. So - a few small is always better than one big!

Mainly this is the psychology that I could think of them to implement - all experiments innovations etc. firstly will hit small fish.....If big fish will not adapt to the new rules - it will die as well but a way later..............................................................................................................................................................

Algo for co-citation:

Personally I think It is simple algo's number's game!

Suggestion for open-minded big brands with reputable profile that are after rankings for generic keywords:

1. Buy 10 private/elite proxies,2. Each day Google your desired key term plus your brand name about 10 times per each proxy,3. After some time you must see exactly this term in Google Suggest,4. After some time you will rank high for the same term without your brand name attached.

You will ask me - why this could work greatly only for big brands!? Because Google is taking seriously into consideration (in order them to change something) only brands with power! Brands that can influence the traffic and search as a psychology and brands that are changing a lot of things around the search - specially how the algo understand the word - BRAND!

Personally - I think they distinguish those guys by traffic volume and business tape. Ether it is e-com or blog - Brand should be highly visible and influential in any niche.

They filter them let's say - by best 10.000(by catalog/niche) - and after that they looking how their(Google's) changes will be affected on those websites. Of course - split/multivariate etc. testing is present there and that is one more - why!? Google implemented Hidden keywords in GA!